The latest Bitcoin news show that the most dominant coin is still struggling in the $8,000 region and is now at $8,700 as the day progresses. Meanwhile, Facebook’s plans to launch a rival to this cryptocurrency and a stablecoin named Libra are still in the making. However, even despite the competition between BTC and Libra, the Facebook crypto chief is bullish on Bitcoin.
Some suggested that technology companies will be better off adopting Bitcoin compared to the creation of an alternative micro-blogging platform like the one Twitter is planning. David Marcus, who is the head of cryptocurrency projects at Facebook, recently said that he sees Bitcoin as a “digital gold” and while the cryptocurrency is held back by its extreme volatility, BTC still “serves a completely different purpose.”
“I don’t think of bitcoin as a currency,” the Facebook crypto chief noted at the New York Times DealBook Conference last week. “It’s actually not a great medium of exchange because of it’s volatility. I see it as digital gold.”
A lot of people have made the comparison between Bitcoin and gold in the past couple of months and stated that the digital token could eventually surpass gold and its current valuation of $8 billion in the total market value. In comparison, the total value of Bitcoin sits at $160 billion which is around 50 times less than gold.
However, we must also account the fact that there is extreme volatility surrounding Bitcoin. This was what made the cryptocurrency swing wildly over the last few years and going from under $1,000 per BTC at the beginning of 2017 to over $20,000 less than 12 months after it. This led to a lot of fears on the market – something that the Facebook crypto chief obviously doesn’t care about.
After Facebook unveiled the plans for a Bitcoin rival, the Facebook crypto chief argued that the company would like to work with regulators and governments around the world to create Libra – distancing the project from Bitcoin and the existing cryptocurrencies.
“[Bitcoin is] an investment class that’s decorrelated from the rest of the market,” Marcus added. “Why feel threatened by that?”
He also said that people “do not use a unit like digital currency or Bitcoin to pay for things because it is so volatile” and noted that it serves “a completely different purpose.”
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Stefan has been writing articles for DCForecasts since 2016 in-house full time. As one of our main cryptocurrency writers, he focuses on covering the latest cryptocurrency news, technical charts, price analyses of coins and press releases. When he is not exploring and covering the latest topics in crypto, you can find Stefan playing basketball, tennis or cycling.
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